2009 will not see the same rapid plummeting of used car values as 2008, according to Eurotax Glass’s.
The average monthly drop in values last year was double that recorded in the low point of the last recession in 1992, said the valuing experts. Now, the average three-year-old car is worth £1750 less than January 2008.
But a lowering of demand in the new car market means that the fall in values is unlikely to continue at the same pace over the next 12 months. With fewer new cars being bought, there are fewer trade-ins for the second-hand market to take on board.
“During the late spring of 2008 used car demand was starting to decline, and yet new car registrations simultaneously hit a three-year high, buoyed by sales to fleets who had not yet suffered the ill effects of the downturn.” explained Adrian Rushmore of EurotaxGlass’s. This meant used car supply was far higher than the demand for vehicles.
Prices will continue to fall though according to Rushmore. “Prices for used cars have not yet hit rock bottom and are likely to continue on a downward path for much of 2009,” he said.
